Revenue during the quarter dropped 8.11 percent to $627.96 million from $683.36 million in the previous year period. Gross margin for the quarter contracted 238 basis points over the previous year period to 34.30 percent. Total expenses were 89.67 percent of quarterly revenues, up from 87.98 percent for the same period last year. That has resulted in a contraction of 169 basis points in operating margin to 10.33 percent.

Operating income for the quarter was $64.89 million, compared with $82.15 million in the previous year period.

Robert F. Moran, Interim chief executive officer, commented, "Our results for the quarter fell short of our expectations, but we have been moving quickly to address the key issues that are critical to returning GNC to growth. We are focused on eliminating confusion regarding our product pricing, providing customers with an improved loyalty program, enhancing the customer experience in our stores and reinvigorating the GNC branded product innovation pipeline. During the quarter we made several key management changes to better align our internal resources to address the issues and we launched a pilot program in seven markets where we have radically changed our pricing methodology and launched a free loyalty program. These changes are not quick fixes but are designed to fundamentally change the way GNC engages with its customers. While its early in the test, we are excited about the results that we are seeing in the pilot markets and look forward to sharing more details over the next several quarters."

The company has spent $6.98 million cash to meet investing activities during the nine month period as against cash outgo of $31.15 million in the last year period.

The company has spent $182.53 million cash to carry out financing activities during the nine month period as against cash outgo of $212.52 million in the last year period.

Cash and cash equivalents stood at $37.20 million as on Sep. 30, 2016, down 77.33 percent or $126.87 million from $164.07 million on Sep. 30, 2015.

Working capital declines
GNC HOLDINGS has witnessed a decline in the working capital over the last year. It stood at $523.18 million as at Sep. 30, 2016, down 18.48 percent or $118.57 million from $641.76 million on Sep. 30, 2015. Current ratio was at 2.62 as on Sep. 30, 2016, down from 3.41 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 53 days for the quarter from 108 days for the last year period. Days sales outstanding went up to 21 days for the quarter compared with 19 days for the same period last year.

Days inventory outstanding has decreased to 69 days for the quarter compared with 119 days for the previous year period. At the same time, days payable outstanding went up to 37 days for the quarter from 30 for the same period last year.